In digital marketing, advisors must know prospect communication regulations and guidelines. One crucial legal framework is the CAN-SPAM Act, enacted in 2003 to prevent unwanted commercial emails from filling users’ inboxes. As advisors build their contact lists and reach out to prospects, understanding and adhering to CAN-SPAM regulations is vital to avoid non-compliance penalties. Here’s what advisors must understand and comply with before sending any communication to prospects.
Understanding the CAN-SPAM Act
First, the CAN-SPAM Act sets forth several requirements for commercial messages. According to these rules, emails must include an easy way for prospects to opt-out or unsubscribe from mailing lists, be it through links or instructions within the email. The sender is responsible for respecting these requests and immediately removing the recipient from their list. Another necessary provision of CAN-SPAM involves identification. Advisors contacting prospects must identify themselves, their company, and the nature of their email.
It’s also essential to note that CAN-SPAM applies to all commercial messages, whether sent to individual consumers or businesses. There’s no gray area here—any electronic email message, the primary purpose is advertising or promoting a service, such as financial planning, including content on a website operated for a commercial purpose, falls squarely under the regulation.
Advisors should also consider the law’s requirement for advertising disclosure when reaching out to prospects. Emails must clearly state that they are an advertisement or solicitation. The location of this disclosure does not matter as long as it is clear and conspicuous.
Last, advisors must remember that the CAN-SPAM Act has strict penalties for noncompliance. Violating the Act can result in fines of up to $51,744 per email, violating the law.
Email marketing best practices
Using email marketing systems that sync to CRM and manage opt-outs is vital to helping ensure compliance. Also, automatic time parameters should be built so that the advisor can’t add an email address that has been unsubscribed for at least three years. This means that the email’s contact information, including the “From,” “To,” “Reply-To,” and routing information, must be accurate and not misleading. Misrepresentation could lead to harsh penalties, including fines and even imprisonment.
Moreover, the email’s subject line must accurately reflect the content of the message, providing recipients with a clear idea of what they can expect when they open the email. The use of deceptive subject lines to encourage opens is strictly forbidden under the CAN-SPAM Act.
The CAN-SPAM Act provides a legal framework regulating commercial email sending. Advisors must familiarize themselves with its provisions and adhere to them while contacting prospects. Understanding CAN-SPAM is necessary to stay on the right side of the law, improve professional credibility, and foster trust among potential clients.
A compliance-focused approach to email marketing will most likely ensure that advisors can effectively connect with prospects without failing to comply with the CAN-SPAM Act.
